The biomedical sector bottomed out, and the agency suggested further increasing allocation

【Pharmaceutical Network Pharmaceutical Stock Market】 Recently, a large number of pharmaceutical stocks have repeatedly risen
more than expected.
The data shows that in the past 20 trading days, Clover has rebounded by 96.
89%; During the same period, Genting Xinyao and Harbour Pharmaceutical both rebounded by more than 60%, Weitai Medical rose by more than 54%, and Jianshi Technology rose by 47.
04%.

Analysts pointed out that recently, the recovery of the biomedical sector in Hong Kong stocks has shown obvious signs, and since the bottom in early October, the sector has rebounded by nearly 35%.

Market analysis pointed out that most of the recent biomedical concept stocks have risen well, which is inseparable from the stimulation of epidemic news and the speculation
of short-term funds.
The epidemic prevention policy tends to be precise prevention and control, which is expected to increase the demand for medical resource construction and benefit the entire industry chain
.
Some people also pointed out that after the pharmaceutical sector experienced the impact of the epidemic disturbance and centralized procurement price reduction, the decline has detached from the fundamentals, and the valuation of a large number of high-quality companies is at the bottom
.
As of October 31, 2022, the sector's P/E ratio has fallen to 22.
73, which is in a historically "undervalued" state and has a continuous rebound logic
.
In addition, the opening of each round of the pharmaceutical bull market has been accompanied by a lower proportion of public fund holdings
.
As of the 2022 half-year report, the public offering position of the pharmaceutical sector accounted for 10.
34%, reaching a new low in the past five years, with sufficient
room for growth.
In addition, some institutions also said that the current pharmaceutical and biological sector is still in a multiple bottom range, and a series of favorable policies have recently stimulated the sector to stabilize and recover
.
Combined with factors such as valuation switching and market style switching, it is recommended to further increase the allocation of the pharmaceutical and biological sectors
.
It is recommended to focus on sub-sectors and individual stocks
such as second-class vaccines, innovative drugs, characteristic devices, chain pharmacies, branded traditional Chinese medicines, medical services, blood products, and R&D outsourcing.
Among them, from the perspective of policy, since 2022, China has continuously issued relevant policies to support the development of
innovative drugs.
For example, in January, the "14th Five-Year Plan" for the development of bio-economy was released, the main content of which is to develop synthetic biology technology and promote synthetic biology technology innovation
.
Orderly promote the application of
new drug development, disease treatment, agricultural production, material synthesis, environmental protection, energy supply and new material development.
In January, the "14th Five-Year Plan" for the development of the pharmaceutical industry was released, the main content of which is to strengthen the research of key core technologies and vigorously promote the research and development
of innovative products.
In January, the "Drug Review Center Accelerates the Review of Innovative Drug Marketing Applications (Trial) (Draft for Comments)" was released, the main content of which is to encourage research and creation of new drugs, meet the needs of clinical drugs, timely summarize and transform the experience of anti-epidemic emergency review, and accelerate the review speed
of innovative drugs 。 In March, the notice of the "Technical Guidelines for Applicability of Single-arm Clinical Trials to Support the Marketing Application of Antitumor Drugs" was released, and the R&D strategy of single-arm clinical trials significantly shortened the time to market of new drugs; In April, the "Technical Guidelines for Program Changes During Drug Clinical Trials (Trial)", for ongoing clinical trials, if the sponsor wishes to change the research endpoint, add or decrease the control group, it can continue the trial after communicating and approving according to the prescribed process, which improves the flexibility and success rate
of clinical trials 。 In August, the Regulations for the Implementation of the Drug Administration Law of the People's Republic of China (Draft Revisions for Solicitation of Comments) was released, which advanced the drug patent linkage system to resolve patent disputes to the stage of drug marketing application, which is conducive to clarifying the non-infringement of generic drug intellectual property rights and clarifying the scope of protection of original drugs.
.
.
Driven by a series of favorable policies, the innovative drug industry has ushered in new development opportunities
.
In addition to innovative drugs, the traditional Chinese medicine industry has also been supported by national policies
.
It is reported that the development of the traditional Chinese medicine industry has accelerated significantly since the issuance of the "Opinions of the CPC Central Committee and the State Council on Promoting the Inheritance and Innovation and Development of Traditional Chinese Medicine" in October 2019, the "Notice on Several Policies and Measures to Accelerate the Development of Chinese Medicine Characteristics" issued in February 2021 implements and refines the development direction mentioned in the "Opinions", and the follow-up policies further refine the various aspects mentioned in the "Opinions" and "Notices", and provide all-round support
in research and development, institutional supply, talent supply, and medical insurance 。 The "14th Five-Year Plan" for the development of Chinese medicine makes comprehensive arrangements
for the work of Chinese medicine during the "14th Five-Year Plan" period.
The Plan clearly states that by 2025, the health service capacity of traditional Chinese medicine will be significantly enhanced, the high-quality development policy and system of traditional Chinese medicine will be further improved, the revitalization and development of traditional Chinese medicine will achieve positive results, and the unique advantages in the construction of a healthy China will be fully utilized
.
Looking forward to the future market, some institutions pointed out that the current short-term pharmaceutical market is still dominated by policy trends, and it is recommended that investors pay close attention to the sentiment and strength
of the next pharmaceutical policy.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.